At the Dunedin City Council's request, the Otago Regional Council is exploring whether the ''Queenstown model'' could be introduced in Dunedin.
The new model, Orbus, began in Queenstown in November and is funded by the Queenstown Lakes District Council, the regional council and the NZ Transport Agency (NZTA).
Dunedin's bus network is funded by the ORC and NZTA.
Dunedin City Council chief executive Sue Bidrose said Cr Aaron Hawkins and others wanted a system investigated whereby the city council subsidised the cost of fares in the city.
''What they did in Queenstown is they managed to reduce the cost of their bus fares because the Queenstown council stepped up to pay the difference.''
The regional council was creating models which would show different subsidised fare options and outline how much each would cost the city council.
''After they've modelled that, we'll look at it and talk to our community about whether it's something that's worth putting in the rates.''
The idea was to encourage more people to use public transport, she said.
''I'm sure they would have seen what's happened in Queenstown and the good impact it had on their public transport.''
Regional council chief executive Sarah Gardner said staff were creating models which would likely be available in the middle of the year.
''Anything that makes bus fares more accessible to our community is something that we certainly think positively of, and we're very willing to enter discussions with the DCC.''
Orbus offers a flat rate of $2 with a GoCard.
With a GoCard in Dunedin prices range from $1.92 to $11.41 depending on the zones travelled and without the card are between $2.60 and $15.30.
The Queenstown service was hailed as a success by many as 85,000 trips were made in December compared with 41,000 in the same month the previous year.
This was about 13% higher than forecast by the regional council.
Queenstown Lakes Mayor Jim Boult could not be contacted yesterday, but he had said earlier last month that he was ''delighted'' by the passenger numbers.
Cr Hawkins said the councils should pursue the model.
''We know that the cost is one of the three biggest factors in whether people use the buses, and that for a lot of people in Dunedin currently, it's too expensive.''
The regional council refused to consider fares when they last reviewed the service, which was a ''missed opportunity'', he said.
''I support us looking at this, to be able to have an informed discussion about how we can support a better bus service in Dunedin.''
This comes after a year of changes to Dunedin's services which had a route and timetable overhaul in September.
A bus hub planned for Great King St, between Moray Pl and St Andrew St, is in the tendering stage. Work is expected to begin later this month. - Additional reporting David Loughrey.
